Company Number: 14398378

Analysis Date: 2025-07-20 15:40 UTC

1. Risk Rating: HIGH
   The company’s financials reveal an extremely minimal asset base and equity of only £1 throughout its operating history. This suggests very limited capital and financial buffer, raising significant concerns about its ability to meet obligations or sustain ongoing operations.

2. Key Concerns:

• Solvency Risk: Net assets and shareholders’ funds stand at just £1 for the past three financial years, indicating a lack of tangible equity or capital to absorb losses or finance growth.
• Liquidity Concerns: Current assets barely exceed current liabilities by £1 each year, signaling a very tight working capital position and potential cash flow vulnerability.
• Operational Stability: The company is very young (incorporated in late 2022) with minimal financial activity and only two employees reported in the latest year, suggesting a small scale operation without proven sustainability or diversification.

3. Positive Indicators:

• The company is compliant with all filing deadlines, with no overdue accounts or confirmation statements, demonstrating regulatory adherence.
• Sole director and 100% shareholder control by Mr Kiril Venkov Iliev provides clear governance lines and accountability.
• The business is categorized correctly as a micro-entity, reflecting its size and associated reporting exemptions, which may reduce administrative burden.

4. Due Diligence Notes:

• Investigate the nature of the company’s contracts and revenue streams to understand its operational model beyond the minimal balance sheet data.
• Review cash flow statements or bank statements if available to assess liquidity in more detail, as the balance sheet alone is insufficient to gauge cash position or payment performance.
• Confirm the absence of contingent liabilities or off-balance-sheet obligations that could heighten risk.
• Verify whether the company has access to external financing or credit facilities given the negligible equity base.
• Assess the director’s background and experience in construction to understand management capability and risk exposure.